Dividends - Canada
Best Canadian REITs
[Last update: Feb 2013]
Real Estate Investment Trusts, with their nice income yields, continue to be popular with investors. Avrex Money has compiled and ranked a complete list of all the Canadian REITs on the Toronto stock exchange (TSX).
| Avrex | Price/ | Payout | ||||
|---|---|---|---|---|---|---|
| Rank | Company | Ticker | Yield | AFFO | Ratio | REIT Sector |
| 1 | Artis REIT | AX.UN | 6.82% | 14.66 | 91.7 | Diversified I (Off/Ind/Ret) |
| 2 | Morguard Real Estate Inv Trust | MRT.UN | 5.09% | 19.53 | 81.7 | Commercial |
| 3 | First Asset Canadian REIT | RIT.UN | 4.67% | – | 26.8 | Fund |
| 4 | Northwest Healthcare Prop REIT | NWH.UN | 6.04% | 16.56 | 94.5 | Retire/Health |
| 5 | Retrocom Mid-Market REIT | RMM.UN | 8.17% | 12.24 | 117.5 | Retail |
| 6 | Cominar REIT | CUF.UN | 6.29% | 15.74 | 93.0 | Diversified I (Off/Ind/Ret) |
| 7 | Dundee International REIT | DI.UN | 6.93% | 13.89 | 96.4 | Commercial |
| 8 | Dundee REIT | D.UN | 5.81% | 17.03 | 92.1 | Office |
| 9 | Partners REIT | PAR.UN | 8.10% | 12.34 | 106.0 | Retail |
| 10 | Boardwalk REIT | BEI.UN | 3.00% | 33.64 | 71.3 | Residential |
| 11 | BTB REIT | BTB.UN | 8.61% | – | 27.4 | Diversified I (Off/Ind/Ret) |
| 12 | Primaris Retail REIT | PMZ.UN | 4.67% | 21.79 | 93.9 | Retail |
| 13 | Timbercreek Global Real Estate | TGF.UN | 6.41% | – | 44.6 | Fund |
| 14 | Calloway REIT | CWT.UN | 5.34% | 18.68 | 89.8 | Retail |
| 15 | Brookfield Canada Office Prop. | BOX.UN | 4.00% | 24.71 | 92.9 | Office |
| 16 | H&R Real Estate Invest. Trust | HR.UN | 5.90% | 16.90 | 90.0 | Diversified I (Off/Ind/Ret) |
| 17 | Pure Industrial Real Estate | AAR.UN | 5.94% | 16.92 | 84.3 | Industrial |
| 18 | Northern Property REIT | NPR.UN | 4.82% | 20.49 | 77.5 | Residential |
| 19 | RioCan Real Estate Investment | REI.UN | 5.14% | 19.63 | 97.6 | Diversified II (Office/Retail) |
| 20 | Allied Properties REIT | AP.UN | 3.88% | 25.83 | 82.9 | Office |
| 21 | Canadian Apartment Property (CAP REIT) | CAR.UN | 4.26% | 22.55 | 85.1 | Residential |
| 22 | REIT INDEXPLUS Income Fund | IDR.UN | 6.56% | – | – | Fund |
| 23 | Crombie REIT | CRR.UN | 6.05% | 16.53 | 98.6 | Diversified II (Office/Retail) |
| 24 | InterRent REIT | IIP.UN | 2.60% | 37.33 | 54.2 | Residential |
| 25 | Cdn. Real Estate Investment | REF.UN | 3.30% | 29.61 | 63.1 | Diversified I (Off/Ind/Ret) |
| 26 | Chartwell Retirement Residence | CSH.UN | 4.98% | 20.03 | 76.2 | Retire/Health |
| 27 | Morguard Sunstone Real Estate | MSN.UN | 5.52% | – | 178.1 | Fund |
| 28 | InnVest REIT | INN.UN | 9.28% | – | 51.2 | Hospitality |
| 29 | Temple Hotels | TPH | 8.38% | – | 86.0 | Hospitality |
| 30 | KEYreit | KRE.UN | 9.01% | – | 239.5 | Retail |
| n/a | Loblaw’s Choice Properties REIT | CHP-UN | – | – | – | Retail |
| n/a | Agellan Commercial REIT | ACR.UN | – | – | – | Diversified I (Off/Ind/Ret) |
| n/a | American Hotel Income Properties REIT LP | HOT.UN | – | – | – | Hospitality |
| n/a | Canadian REIT Income Fund | RIU.UN | 4.81% | – | – | Fund |
| n/a | Connor Clark & Lunn Real Ret | RRB.UN | – | – | – | Fund |
| n/a | Dundee Industrial REIT | DIR.UN | 6.08% | – | – | Industrial |
| n/a | HealthLease Properties REIT | HLP.UN | 7.71% | – | – | Retire/Health |
| n/a | Holloway Lodging REIT | HLR.UN | – | – | – | Hospitality |
| n/a | Huntingdon Capital | HNT | – | – | – | Diversified I (Off/Ind/Ret) |
| n/a | Lanesborough REIT | LRT.UN | – | – | – | Residential |
| n/a | Middlefield Can-Global REIT | RCO.UN | 6.37% | – | – | Fund |
| n/a | Morguard North American REIT | MRG.UN | 5.13% | – | – | Residential |
| n/a | N.W. Intl Healthcare Prop.REIT | MOB.UN-X | 7.44% | – | – | Retire/Health |
| n/a | North American REIT | NRF.UN | 6.19% | – | – | Fund |
| n/a | Pure Multi-Family REIT LP | RUF.U-X | 7.11% | – | – | Residential |
| n/a | True North Apartment REIT | TN.UN-X | 7.08% | – | – | Residential |
| n/a | US Agency Mortgage-Backed REIT | USM.UN | – | – | – | Fund |
Avrex Rank – Is derived based on several valuation metrics. For illustration purposes, only two of those metrics are listed in the table above. A rank of ‘n/a’ indicates that there is insufficient data for a ranking.
P/AFFO – Price per ‘Adjusted Funds From Operation’. A lower number is better for this valuation metric.
Payout Ratio – Expressed as a percentage. A lower number ‘could’ indicate a safer distribution payout.
Asset Allocation
As an individual investor, where do REITs fit within your portfolio?
The Avrex Money portfolio has 6 % invested in REITs. This consists of owning individual REITs as well as owning the following REIT Index ETFs for further diversification:
By way of comparison, large pension funds hold 9 % of their assets in real estate. Considering that many individual investors also have real estate, in the form of home ownership, I feel that the 6 % allocation to REITs is adequate.
Since REITs are not highly correlated to the movement of equities, they provide effective diversification within your portfolio. REITs are great long-term holdings in your retirement account.
[Disclaimer: The above rankings are opinions only and should not be considered investing advice. Perform your own due diligence. Contact a professional before making any investing decisions.]
